Profits surge at Big Yellow

Kasmira Jefford
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BIG Yellow, the self-storage provider, yesterday posted a 20 per cent jump in half-year profits but warned that the addition of VAT to storage costs will continue to weigh down earnings growth in the short term.

Chairman Nicholas Vetch said the group focus on London and the south east, where it operates 58 of its 66 facilities, had helped it meet challenges in the period including higher interest costs and a subdued economic environment.

Adjusted pre-tax profits rose to £13.9m in the six months to 30 September, up from £11.6m a year earlier, as store revenues grew 11.5 per cent to £35.5m. Occupancy rose to 68.5 per cent from 63.5 per cent.